Source: Sharecast
In the 26 weeks to 1 August, adjusted pre-tax profit ticked up 2.6% to £36.1m on revenue of £247.4m, up 8.5% on the same period a year earlier. Barr said the rise in revenue reflects continued core brand growth and the contribution from recent acquisitions Fentimans and Frobishers.
The adjusted operating margin was maintained at 15.0%, while statutory pre-tax profit dipped 3.7%, mainly due to one-off costs associated with integrating Fentimans.
AG Barr said it was on track to meet full-year market expectations for adjusted pre-tax profit of £71.5m.
Chief executive Euan Sutherland said: "We made strong progress against our strategic priorities during the first half of the year, with continued momentum across our brands and strong execution against our strategic growth drivers. Despite supply constraints impacting customer service in the peak summer months, our core brand portfolio performed well in the market, supported by successful rebrands, innovation and marketing. Our recent acquisitions have expanded our addressable market and investment in our manufacturing capabilities continues to significantly strengthen the business for the long term.
"Looking ahead, we remain confident in the significant opportunities for the business and our ability to build on this momentum in the second half. With our acquisitions now fully integrated and our investment programme progressing well, we remain on track to deliver full year performance in line with market expectations."
At 1015 BST, the shares were down 2.8% at 582p.
Russ Mould, investment director at AJ Bell, said: "AG Barr’s first-half results were lacking in fizz and left the shares flat.
"The company still has some making up to do with the market after August’s revelation that it would take a £10 million hit from issues in its supply chain. At least Barr was able to provide some reassurance on the full-year outlook – reiterating guidance on revenue growth and margins.
"A hike in the dividend reaffirmed the company’s cash generating credentials and management’s confidence in the outlook despite a tricky consumer backdrop.
"Barr will hope that people are still prepared to splash out on a can of soft drink as a regular affordable treat even when household budgets are under pressure. To this point, its core brand Irn-Bru outperformed the wider soft drinks market but the weakness in its Funkin cocktail business saw an appreciable drop in sales."
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